When is the German/ Eurozone Prelim GDP and how could it affect the EUR/USD?
|German/ Eurozone Preliminary GDP overview
The preliminary readings of Germany's and Eurozone Gross Domestic Product (GDP) are slated for release on Wednesday at 07:00 GMT and 10:00 GMT respectively.
Market forecasts are calling for a contraction in the headline quarter-on-quarter figure, from last quarter's 0.5% to the current period's -0.1%. A drop in the year-on-year figure from 2.0% to 1.6% is also expected.
Meanwhile, the consensus amongst traders expects the bloc’s economic growth to remain steady at 0.2% inter-quarter in Q3, while on an annualized basis, is expected to arrive at 1.7%, matching the first readout.
How could it affect the EUR/USD?
A positive surprise in the GDP figures for Europe's economic power-house could offer extra legs to the ongoing corrective upside to the EUR/USD pair, but the further recovery appears limited, as the Eurozone GDP second estimate is unlikely to have any positive impact on the common currency.
“The 4 hours chart shows that the price remains below a bearish 20 SMA, which maintains a sharp downward slope well below the larger ones, while technical indicators have corrected oversold conditions, now resuming their declines within the bearish ground. Failure to retake and advance beyond 1.1300 is a strong sign for bears, who will try to push the pair sub-1.1200. In the longer run, the advance will continue looking corrective unless the pair is able to regain 1.1460. Support levels: 1.1215 1.1185 1.1140. Resistance levels: 1.1300 1.1335 1.1370,” FXStreet’s Chief Analyst Valeria Bednarik writes.
Key Notes
EUR/USD: On the defensive ahead of German GDP and US CPI release
German GDP Preview: Outright contraction could send the Euro even lower, regardless of expectations
EUR/JPY Technical Analysis: Bear MA crossover favors downside break of a rising channel
Eurozone GDP growth to rebound in Q4 as ECB ends its bond buying – Reuters poll
About German/ Eurozone Preliminary GDP
The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
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